Decentralization Is the Preferred Strategy for Organizations in Simple, Integrated

question 13

True/False

Decentralization is the preferred strategy for organizations in simple, integrated (one market), and hostile environments.

---

Definitions:

Comparative Advantage

The skill of an entity—be it an individual, a company, or a country—to deliver a good or service more efficiently, incurring lower opportunity costs, than competing parties.

Absolute Advantage

The ability of an individual, company, or country to produce a good or service at a lower cost per unit than the competition.

Orange Production

The production process of growing and harvesting oranges, primarily for consumption as fruit or for juice production.

Opportunity Cost

The value of the next best alternative foregone as a result of making a decision.